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McMAHON v. NEW JERSEY MFRS. INS.

834 A.2d 1074 (2003)

364 N.J. Super. 188

Margaret T. McMAHON, Plaintiff-Respondent, v. NEW JERSEY MANUFACTURERS INSURANCE COMPANY, Defendant-Appellant.

Superior Court of New Jersey, Appellate Division.

Reargued November 6, 2003.

Decided November 18, 2003.

Attorney(s) appearing for the Case

Daniel J. Pomeroy argued the cause for appellant (Mortenson and Pomeroy, attorneys; Daniel J. Pomeroy, Springfield and Karen E. Heller, New York, NY, on the brief).

Ronald Spevack, Iselin, argued the cause for respondent on October 9, 2003; Howard H. Sims, Washington, DC, argued the cause for respondent on November 6, 2003 (Spevack & Cannan, attorneys; Mr. Sims, of counsel and on the brief).

R.C. Westmoreland argued the cause for Amicus Curiae, Association of Trial Lawyers of America New Jersey, on November 6, 2003 (Westmoreland, Vesper and Schwartz, attorneys; Mr. Westmoreland and Kathleen F. Beers, on the brief).

Before Judges KING, LINTNER and LISA.

The opinion of the court was delivered by LINTNER, J.A.D.

We must determine whether an insurance company that suffers an adverse jury verdict in excess of its underinsured liability limits is subject to the consequences of the Offer of Judgment rule, after rejecting its insured's offer to settle within those limits. We hold that the Offer of Judgment rule is applicable to both Uninsured (UM) and Underinsured (UIM) benefits and, therefore, a carrier is subject to the...

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